Micron’s Sanand Semiconductor Plant Set for Major Scale-Up as AI Drives Memory Demand

Micron Technology plans to scale up its semiconductor assembly and testing operations at its Sanand facility in Gujarat next year, CEO Sanjay Mehrotra said on Thursday, as he highlighted the growing demand for memory chips driven by artificial intelligence.

Speaking at the inaugural session of SEMICON India 2026, Mehrotra said Micron would assemble and test tens of millions of chips at Sanand this year and scale up to hundreds of millions of chips next year.

Micron began commercial production at Sanand earlier this year. Mehrotra said the facility is the first semiconductor assembly and test facility in India and the first project under the India Semiconductor Mission.

Finished DRAM and NAND products produced at the Gujarat facility are being shipped to customers around the world with a “Made in India” label, he said.

Micron has operated in India for seven years and currently employs more than 7,000 people directly, while its activities support tens of thousands of additional jobs across the value chain.

The company has memory chip design operations in Bengaluru and Hyderabad, which Mehrotra said form a core part of Micron’s global technology network. India-based teams have contributed to more than 3,700 patents, inventions and disclosures, he said.

Mehrotra credited the India Semiconductor Mission and ISM 2.0 with providing a foundation for the semiconductor industry in the country.

He said Micron’s current production capacity at Sanand already exceeds the memory requirement of India’s entire laptop market.The company has also recorded around 1,400 per cent growth in business, which Mehrotra attributed to rising demand for memory chips from artificial intelligence.

Explaining the connection between AI and memory, Mehrotra said AI systems depend on data, while memory and storage are required to move and process that data. He added that as AI models become larger, demand for memory also increases.

Micron’s India operations now include chip design, assembly and testing, with products manufactured in the country being shipped to customers across the world.

Mehrotra said the company’s engineering work in India began before the Sanand facility and that its centres in Bengaluru and Hyderabad are part of its global technology network.

The expansion comes as India seeks to strengthen its semiconductor manufacturing ecosystem through policy support and new investments in the sector.